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Christine Corp. uses a job order costing system for its production costs. A predetermined cost driver rate based on machine hours is used to apply

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Christine Corp. uses a job order costing system for its production costs. A predetermined cost driver rate based on machine hours is used to apply overhead to individual jobs. The following information is for the month of December, when jobs 45 and 46 were completed. Job 45 was the only job that was currently in production as of 12/1. Budgeted overhead for 2010 is $540,000, and estimated machine hours are 60,000 Direct Labor costs are paid at $20 per hour. Actual direct labor hours used for each job were as follows: Job 45 used 800 DL hours, Job 46 used 1200 DL hours, and Job 47 used 1400 DL hours. Supervisor and staff salaries for the month were S53,000. Actual Machine hours used for each job in December were as follows: 2,000 MH for Job 45, 3,000 MH for Job 46, and 3,500 MH for Job 47. Other factory costs included Beginning Balances Materials requisitioned for production Raw materials Work in process - Job 45 Finished Goods Purchases of raw materials S 10,500 54,000 112,500 150,000 Job 45 Job 46 Job 47 S 45,000 37,500 25,500 6.000 direct materials Other Costs Facilities Utilities Repairs and Maintenance S 6,500 4,000 4,000 1. Compute the predetermined overhead rate 2. Compute the total cost of job 45 when it is finished in December 3. Compute the total overhead costs applied to all jobs during December, assuming 8,500 MH were used. 4. Compute the actual amount of overhead incurred during December 5. Was overhead underapplied or overapplied in the month of December? 6. What is the balance of work in process for Christine Corp. on December 315

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